Entering Purchase Order Details Information

Use the Terms and Conditions window to enter terms, conditions, and control information for purchase orders. Discussed in this section are:

  • Purchase Order Terms
  • Agreement Controls
  • Contract Terms
  • Encumbrance Controls

1. Enter the Payment terms for the purchase order. Purchasing displays default payment terms that you can accept or change.

2
. Enter the Freight terms for the purchase order. Purchasing displays default freight terms that you can accept or change.

3
. Enter the Freight Carrier for shipment of the purchase order. Purchasing displays a default freight carrier that you can accept or change.

4
. Enter the FOB point for the purchase order. Purchasing displays a default free on board (FOB) designation that you can accept or change.

5
. Optionally select a value in the Pay On field to enable or disable Payment on Receipt for this document.
Receipt is defaulted in this field if the supplier site is set up as a Payment on Receipt site in the Supplier Sites window. Receipt means that Payment on Receipt will automatically generate an invoice for this purchase order.
Select Null if you do not want Payment on Receipt to automatically create an invoice for this document. If the supplier site is not set up as a Payment on Receipt site, this field is disabled, and you cannot change it.

6
. Select the Acceptance Required method. If you select a method, you can enter the due By date, when you require the supplier to return an acceptance for your purchase order.
Document only: Acceptance is entered for the entire document.
Document or Shipment: Acceptance is entered for the document or for individual shipments.
Document and Signature: If Oracle Procurement Contracts is implemented, acceptances are entered for the entire document with a signature. This method causes the approved document to have a status of Pre-Approved until
signatures are completed.

7. Select Confirming Order to indicate that the purchase order is a confirming order. A confirming order is an order that you are submitting formally to confirm a verbal order already placed with the supplier. For confirming orders, Purchasing prints the following on the purchase order header: This is a confirming order. Do not
duplicate.

8. Select Firm to indicate that the purchase order is firm. Firm your purchase order when you want to indicate to Master Scheduling/MRP or your manufacturing application that it should not reschedule this purchase order shipment.

9. Select Supply Agreement if you want Oracle Supplier Scheduling to communicate releases against this blanket purchase agreement to suppliers. Supplier Scheduling can communicate releases against a blanket purchase agreement only when this option is selected.

10. For planned purchase orders, blanket purchase agreements, and contract purchase agreements, enter

  • the Effective start date for the purchase order
  • the Effective expiration date for the purchase orde
  • the Amount Limit (for the total of all releases) and the Minimum Release Amount that can be released against this purchase order. For blanket and contract purchase agreements, the Amount Limit must be equal to or greater than the Amount Agreed.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules